Fog lifting at Maersk as shipping sector speeds up

Wednesday, August 16, 2017 - 01:15

Denmark's A.P. Moller Maersk has given an upbeat outlook for container shipping, lifting its shares as investors looked beyond one-off second-quarter charges. It's also planning to take on the banks with a new finance venture. Laura Frykberg reports.

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A brighter outlook for shipping company, Maersk.
Its CEO saying the industry is showing signs of recovery..
With a pick up in freight rates of 22 percent in Q2, plus an ease in overcapacity.
Maersk also announcing a change in direction for its business.
Combining financing, with its operations.
(SOUNDBITE) (English) GLOBAL FINANCIAL ECONOMIST, COMMERZBANK, PETER DIXON, SAYING:
"Companies don't have to post collateral in a sense that the collapse was already on board the ships. And it perhaps will be an interesting way for Maersk to ensure that it can increase market share at a time when the global shipping industry is under significant pressure."
But the numbers still cast a shadow over the Danish firm.
The world's largest shipping company reported a net loss of $264 million in the second quarter.
And also expects to lose several hundred billion in the third...
Maersk is still forecasting increased demand this year though by 4 percent.
Shares in the company - just as mixed as its latest news.
Initially falling 3.5 percent - then rising by 1 a few hours later.

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